You get it, you need to improve your Customer Lifetime Value for your eCommerce store and you want to invest your efforts into what matters.
Let’s do it right.
In this episode, you’ll learn the 5 steps you need to take in order to craft your Customer Value Optimization Strategy.
- (00:00) – Intro
- (00:18) – 5 main steps to do Customer Value Optimization
- (00:22) – Step 1 – Measure what Matters
- (00:49) – Step 2 – Customer Segmentation – RFM is best
- (01:04) – Step 3 – Run Surveys with your customers
- (01:35) – Step 4 – Run Customer Journey Mapping
- (01:50) – Step 5 – Ongoing experimentation across the whole Customer Journey
Measure what matters
You can’t improve what you don’t measure.
Things like average days between transactions, Net Promoter Score or return policies. These all must be tracked before going deeper into customer value optimization.
Not all customers are created equal. Find the best and the worst customers.
I strongly suggest RFM segmentation to identify your best and your worst customers.
Hopefully we have a solution that can do RFM segmentation automatically and update it in real time.
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After you identified the main customer groups, run surveys.
Find the hidden reasons, barriers, what makes each of those customer groups buy, what makes your worst customers come and what makes your ex-lovers leave.
If you can afford, also apply the Jobs to Be Done methodology with customer interviews. Analyze the chat transcripts from the support so that you can find all the frictions on the customer journey.
Run customer journey mapping
Once you have all this data, run customer journey mapping from the As-Is to To-Be customer journey, to improve all the touchpoints with the customers on all the channels that are being used.
Ongoing experimentation across the whole customer journey
This is usually made only on the website by CRO agencies.
The challenge here is that few of them are fixing more than the user experience on the website, while the customer journey is way longer than that.
Stay tuned for our next eCommerce Growth Tips video next week where we learn more about why Customer Retention matters!